Dowlais Group PLC (DWL) AI Stock Analysis

• Market Cap: £1.11B
• Dividend Yield: 4.88%
• Average Volume (3M): 2.46M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.49
• Revenue Growth: -8.09%
• EPS Growth: 82.87%
• Country: UK
• Employees: 23,327
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Manufacturers
• EPS (TTM): 0.06
• Shares Outstanding: 1,316,658,700
• 10 Day Avg. Volume: 2,537,505
• 30 Day Avg. Volume: 2,456,579
• PEG Ratio: 0.08
• Price to Book (P/B): 0.40
• Price to Sales (P/S): 0.21
• P/FCF Ratio: -12.89
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £79.53
• Price Target Upside: -5.99% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: 88.00p ▲(4.02% Upside)

Dowlais Group PLC's overall stock score is primarily influenced by its financial challenges, including declining revenues and operational losses. However, the stock shows positive technical momentum and benefits from strategic corporate events, such as board appointments and potential mergers, which could improve its future outlook. The high dividend yield also provides some appeal to investors.

Positive Factors

Strategic Merger

The merger is expected to enhance Dowlais Group's global scale and technology capabilities, potentially leading to long-term value creation and improved market position.

Shareholder Support

Robust shareholder backing indicates confidence in the company's strategic direction and potential for future growth, which can foster stability and support long-term initiatives.

Innovation and Quality Focus

A commitment to innovation and quality in engineering solutions supports sustained demand across sectors, bolstering revenue streams and competitive advantage over time.

Negative Factors

Declining Revenues

Continued revenue decline reflects challenges in market demand or competitive positioning, which can impact long-term financial health and necessitate strategic adjustments.

Negative Cash Flow

Negative cash flow indicates cash outflows exceeding inflows, which can strain operations and limit the company's ability to invest in growth opportunities or manage debt effectively.

High Leverage

Elevated leverage levels can increase financial risk and reduce flexibility, potentially impacting the company's ability to navigate economic downturns or invest in strategic initiatives.

Dowlais Group PLC Business Overview & Revenue Model

Company Description

Dowlais Group PLC (DWL) is a UK-based engineering company specializing in the design and manufacture of advanced powertrain and automotive components. The company operates primarily in the automotive sector, providing innovative solutions that enhance vehicle performance and efficiency. Dowlais Group offers a range of products including electric drive systems, traditional drivetrain components, and various engineering services aimed at supporting the transition to electric and hybrid vehicles. The company focuses on sustainable technologies and aims to lead in the development of next-generation automotive solutions.

How the Company Makes Money

Dowlais Group PLC generates revenue through multiple streams primarily focused on the automotive sector. The main source of revenue comes from the sale of its powertrain components and systems to original equipment manufacturers (OEMs) and automotive suppliers. The company has established significant partnerships with leading automotive manufacturers, which help secure long-term contracts and ongoing projects. Additionally, Dowlais may also earn revenue from engineering services, consulting, and aftermarket support for its products. As the automotive industry increasingly shifts towards electrification, Dowlais capitalizes on this trend by investing in research and development to create cutting-edge technologies that meet the evolving demands of the market.

Dowlais Group PLC Financial Statement Overview

Summary

Dowlais Group PLC is facing financial challenges highlighted by declining revenues, operational losses, and negative free cash flow. While the balance sheet shows some stability, the overall financial health is weakened by high leverage and consistent net losses.

Income Statement

The company has experienced declining revenue with a decrease from 2023 to 2024. Gross profit margin has remained consistently low, and the net profit margin is negative, indicating ongoing losses. EBIT and EBITDA margins are weak, reflecting operational challenges.

Balance Sheet

The debt-to-equity ratio shows moderate leverage, but the increasing net debt is concerning. The company has a reasonable equity ratio, which suggests some financial stability. However, declining stockholders' equity over the years is a potential risk.

Cash Flow

Free cash flow has turned negative, indicating cash outflows exceeding inflows. The operating cash flow to net income ratio is poor due to negative net income, highlighting cash generation issues. The free cash flow to net income ratio reinforces concerns about cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.23B	4.34B	4.86B	4.59B	4.12B	4.13B
Gross Profit	412.00M	646.00M	757.00M	658.00M	581.00M	470.00M
EBITDA	387.00M	345.00M	31.00M	386.00M	263.00M	342.00M
Net Income	-86.00M	-173.00M	-501.00M	-82.00M	-302.00M	-199.00M
Balance Sheet
Total Assets	5.54B	5.71B	6.23B	9.80B	10.04B	10.43B
Cash, Cash Equivalents and Short-Term Investments	325.00M	354.00M	313.00M	270.00M	275.00M	141.00M
Total Debt	1.48B	1.44B	1.31B	3.44B	2.71B	2.77B
Total Liabilities	3.37B	3.40B	3.67B	4.79B	5.21B	5.63B
Stockholders Equity	2.13B	2.27B	2.53B	4.93B	4.80B	4.78B
Cash Flow
Free Cash Flow	-35.00M	-71.00M	12.00M	-12.00M	55.00M	205.00M
Operating Cash Flow	152.00M	120.00M	307.00M	210.00M	223.00M	390.00M
Investing Cash Flow	-197.00M	-119.00M	-262.00M	-137.00M	-115.00M	-140.00M
Financing Cash Flow	38.00M	17.00M	23.00M	-100.00M	26.00M	-364.00M

Dowlais Group PLC Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 84.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:DWL, the sentiment is Positive. The current price of 84.6 is above the 20-day moving average (MA) of 83.59, above the 50-day MA of 82.14, and above the 200-day MA of 71.83, indicating a bullish trend. The MACD of 0.33 indicates Positive momentum. The RSI at 56.81 is Neutral, neither overbought nor oversold. The STOCH value of 66.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:DWL.

Dowlais Group PLC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
XPS	70 Outperform	£704.03M	27.02	14.79%	3.52%	13.53%	-57.83%
CVSG	66 Neutral	£881.01M	46.25	6.75%	0.68%	4.00%	-6.98%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DWL	61 Neutral	£1.11B	-13.42	-3.81%	4.88%	-8.09%	82.87%
THG	60 Neutral	£780.11M	-4.41	-18.75%	―	-20.36%	44.33%
MOON	56 Neutral	£632.06M	14.08	―	1.40%	3.94%	―
AML	52 Neutral	£640.38M	-2.15	-37.46%	―	-7.90%	18.13%

Dowlais Group PLC Corporate Events

Dowlais Group PLC Announces Director Appointment

Dowlais Group PLC has announced the appointment of Celia Baxter, their Senior Independent Director and Chair of the Remuneration Committee, as a non-executive director at Genus plc. This move may enhance Dowlais Group’s strategic connections and influence within the industry, potentially benefiting stakeholders through strengthened leadership and governance.

Dowlais Group PLC Strengthens Board with New Appointment

Dowlais Group PLC has announced a significant board appointment, with Fiona MacAulay joining as an independent non-executive director. This move is part of a broader strategy to strengthen governance and oversight, as MacAulay will also chair the Remuneration Committee and serve on the Audit and Nomination Committees at Rosebank Industries PLC, potentially enhancing collaborative opportunities and strategic alignment between the two companies.

Dowlais Group PLC Expects Strong Year-End Performance Amid Market Challenges

Dowlais Group PLC reported strong operational execution in its latest trading update, with performance expected to reach the top end of prior guidance for the full year. Despite a challenging market environment, the company achieved a 1.1% year-on-year growth in adjusted revenue at constant currency, with significant contributions from the ePowertrain product line and its joint venture in China. The group’s adjusted operating margin improved due to commercial recoveries and restructuring initiatives, offsetting some operational inefficiencies. The company remains confident in mitigating the impact of U.S. tariffs through commercial actions and expects its full-year performance to align with the upper range of its guidance, bolstered by a potential merger with American Axle, which could enhance its competitive positioning.

Dowlais and AAM Merger Receives EU Clearance, Set for 2026 Completion

Dowlais Group PLC and American Axle & Manufacturing Holdings, Inc. have announced that their proposed combination has received unconditional clearance from the European Commission, satisfying the EU Antitrust Condition. The merger has been cleared in seven of the ten required jurisdictions, with Brazil, Mexico, and China still pending. The companies expect the merger to close in the first quarter of 2026, with key executives from Dowlais invited to join the senior management team of the combined group, although Dowlais’ CFO has opted to pursue other opportunities.